5-39 - E & P = Beginning E & P +...

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ACCT 467 Kristen Jack Chapter 5 – Problem 39 2/14/2012 Property Basis = 250,000 Property Fair Market Value = 300,000 Liability = 400,000 (shareholder assumes) (a) Gain = Liability - Basis = 400,000 – 250,000 = $150,000
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Unformatted text preview: E & P = Beginning E & P + Gain on Distribution = 650,000 + 150,000 = $800,000 (b) Dividend Income = FMV Liability = 300,000 400,000 = $0 (cant be negative) Basis on Property = new value - liability = 400,000 400,000 = $0...
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This note was uploaded on 02/22/2012 for the course ACCT 467 taught by Professor Ruhupatty during the Spring '12 term at Andrews Univeristy.

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